Question
Raman invested Rs. 70,000 in a bank offering 10%
compound interest per annum for 2 years. After 2 years, he used the total amount to start a business with Raj, who contributed Rs. 50,000. Raman invested his amount for 8 months, while Raj kept his investment in the business for the entire year. What will be the ratio of their profits at the end of the year?Solution
Raj invested 50,000 for 12 months Required ratio = 84,700Ă—8: 50,000Ă—12 = 677600: 600,000 = 6776: 6000 = 847: 750
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